Fidelity RIP 2018 methodology changes

[DEC-1982]

I asked Fidelity RIP to estimate our (2 person) medical expenses yesterday. I saw their estimate of (Medical+Dental+Vision) jumped from below $2100 at the beginning of the year to around $2750 now. I was definitely surprised. The jump was mainly due to medical insurance cost estimates ($1165 per person now).

I downloaded the methodology document, and saw they had dropped healthcare inflation rate to 4.9% (used to be 5.5% at the beginning of the year, and 7% in earlier years).

I should study their document more and see what else they changed in their methodology.

 

[bizlady]

where did you find the "requested estimate" on the website? Is it built into their planner?

 

[Dtail]

Yes just ran the calculator and agree they changed it to 4.9%. They also took it off the front page and replaced it with E Money which I am not interested in.

 

[DEC-1982]

where did you find the "requested estimate" on the website? Is it built into their planner?

Yes, it's in the planner. There are two ways of entering expenses:

Option 1. 2 numbers, fixed and discretionary expenses

Option 2. detailed expense worksheet
Using option 2 allows for entering data in some detail. In the healthcare area, you can ask the system to come up with a healthcare cost estimate. That removes the need for us to put in separate expenses before medicare, after medicare, vision/dental, long term insurance etc This also allows the planner to have health care inflation different (4.9%) from overall inflation (2.5%).

I thought the healthcare cost increases were becoming more stable ie no more 25% jumps, so I was definitely surprised.